The rupee advanced by 16 paise against the dollar to breach the 65 level at 64.88 — a fresh 17-month high — on increased liquidation of the American currency by exporters and banks.

A firm equity market opening and continued foreign inflows made the going easy for the rupee.

However, the dollar’s recovery against some currencies overseas restricted the rupee upmove.

The rupee opened a tad weak at 65.07 at the Interbank Foreign Exchange market today.

However, it strengthened to 64.88 on increased dollar selling by banks and exporters.

It hovered in a range of 65.07 and 64.88 before quoting at 64.91 at 4.25 pm local time.

On Monday, scripting its second—biggest single—day gain this year, the rupee had zoomed 37 paise to close at a 17—month high of 65.04.

Forex and money markets were closed yesterday for ‘Gudi Padwa’.

The 30-share BSE index Sensex ended up 121.91 points or 0.41 per cent at 29,531.43